Batu Kawan's MKH Oil Palm offer closes at 79.58pct

KUALA LUMPUR: The mandatory takeover offer for the remaining shares in MKH Oil Palm (East Kalimantan) Bhd has concluded, with the bidder and its associates now controlling 79.58 percent of the company. The transaction was facilitated by Maybank Investment Bank Bhd, representing Whitmore Holdings Sdn Bhd and the ultimate bidder, Batu Kawan.

The cash offer was set at RM0.6626 per share and closed at 5 pm on Thursday, August 27. The mandatory offer arose from Batu Kawan's acquisition of a controlling interest in MKH Bhd, which triggered the requirement to extend an offer for MKH Oil Palm shares. In May, Whitmore had purchased a 3.9 percent direct stake in MKH Oil Palm, while MKH and its subsidiaries collectively owned a large portion of the plantation firm.

After the completion of the MKH acquisition, Whitmore, Batu Kawan, and associated parties were required to make the unconditional mandatory offer for MKH Oil Palm at the set price. As of the closing date, the bidder and associates controlled 701.9 million MKH Oil Palm shares, or 69.20 percent of the company, based on an authorized share capital of 1.014 billion.

They received acceptances for 99.07 million additional shares, or 9.77 percent, and acquired or agreed to acquire a further 6.19 million shares, accounting for 0.61 percent, outside the formal acceptance process. This resulted in their total ownership of 807.16 million shares, or 79.58 percent of MKH Oil Palm, based on the total of 1.014 billion shares in issue, not including treasury shares. An additional 88,647 shares, equivalent to 0.01 percent, were pending verification.